In 1994 Eric Wintemute was appointed CEO of American Vanguard Corporation (NYSE:AVD). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for American Vanguard
How Does Eric Wintemute's Compensation Compare With Similar Sized Companies?
According to our data, American Vanguard Corporation has a market capitalization of US$415m, and paid its CEO total annual compensation worth US$2.3m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$652k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$2.2m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where American Vanguard stands. On a sector level, around 18% of total compensation represents salary and 82% is other remuneration. According to our research, American Vanguard has allocated a higher percentage of pay to salary in comparison to the broader sector.
So Eric Wintemute receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at American Vanguard has changed from year to year.
Is American Vanguard Corporation Growing?
American Vanguard Corporation has seen earnings per share (EPS) move positively by an average of 9.7% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 3.1%.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.
Has American Vanguard Corporation Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in American Vanguard Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Eric Wintemute is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. On another note, American Vanguard has 3 warning signs (and 1 which is concerning) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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